Walt Disney does not seem to be going through his best moment, especially with the open conflict with his workers on account of a law in Florida. His CEO Bob Chapek’s idea of not interfering in political affairs has backfired on the company, taking the stock even further from its best levels of the year. Even last March 14, marked its worst record of the last year at 128.38 dollars per share.
All on account of the strike that has arisen in protest against a law voted by the United States Senate sponsored by the Republicans called by opponents “Don’t say gay” and that has forced the company to reverse its neutral stance and apologize to the workers, as well as to suspend their economic contributions to state politicians. Chapek has promised “lasting change” within the company due to the company’s silence regarding the regulations. In addition, he has promised donations of up to 5 million dollars for LGTBIQ + groups
As well just decided the sine the closure of Shanghai Disney Resort, which is made up of Disneyland, Disneytown and Whising Star Park last month, due to the rebound in local cases in China of Covid-19. And it adds to the closure of the Hong Kong park, which occurred in January and was expected to open, now with revision, on April 20. At the moment there are 1,366 cases, to the bay those that remain in the country.
None of this helps a Disney that, in the week, loses 0.83% with cuts in the month that are close to 7% for value. Also in negative, it moves on a quarterly basis, with cuts that reach 9.43% for the value on Wall Street, whileSo far in 2022, Disney shares yielded 10.2% in the market and in interannual, the fall exceeds 25%.
While analysts do not seem to be convinced of the course of the value. From the Guggenheim to the analyst Michael Morris has pointed the target price of Disney shares at 150 euros per share from previous 172 rated value-neutral.
All looking at its theme parks, with what happened in Florida and the bad precedent it presents, although it also considers that there has been a rapid recovery after reopening with its new attractions, technological updates. And all this while waiting for an event on this day, the Parks Investor Experience, the first in person to take place after the pandemic.
doesn’t help either Hedge fund sales of Disney stock that have occurred in the past quarter. Which leads to a negative outlook on the value with quarterly sales of up to 6.8 million shares.
For the results of this quarter sales of 20,150 million dollars are expected, what it would mean an improvement over 20% compared to those registered last year in the same quarter. As for Disney +, an increase in investments in programming and production is expected from 800 to 1,000 million dollars.
The Tipranks recognize the opinion of 20 analysts, of which 15 opt to compare the value in the market and 5 more to keep it in their portfolio. The value of the object was about $191.63 due to the fact that the engine had a potential value of 37.7%.
And finally Therefore, the Truist reduces Disney’s stock price to $160 the action from the previous 200 after highlighting its departure from Russia and the relationship between the company’s income and households. Its analysts point out that Russia represents 2% of its total income and estimate 4.6% of broadband households in 2024.
He expects earnings per share to fall to $4.28 from $4.47 previously. but also a drop in revenue to 83.5 billion of the consensus that points to 85,000 million.
If you know the value of most of the Stock Market assets, register for free at Investment Strategies.